How is Crypto Payroll Affected by Government Shutdowns?
Government shutdowns can create substantial challenges for crypto payroll, tying it closely with market liquidity conditions. The recent U.S. government shutdown lasted over 40 days, resulting in a liquidity reduction of nearly $700 billion. This liquidity drain has had a noticeable impact, causing significant sell-offs in major cryptocurrencies such as Bitcoin and Ethereum, with Bitcoin declining by around 19%. This is an illustration of the interconnectedness between traditional financial systems and cryptocurrency markets.
The withdrawal of funds from the Treasury General Account (TGA) has intensified this situation, leading to a greater reliance on emergency facilities like the Standard Repo Facility (SRF). Consequently, investors…
